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Liquor Control Act
Loi sur les alcools

ONTARIO REGULATION 116/10

MINIMUM PRICING OF LIQUOR AND OTHER PRICING MATTERS

Historical version for the period March 1, 2018 to August 6, 2018.

Last amendment: 481/16.

Legislative History: 292/15, 481/16.

This Regulation is made in English only.

Definitions

1. (1) In this Regulation,

“annual adjustment date” means, subject to subsection (2), March 1 in every year;

“cider” means cider as described in section B.02.120 of the Food and Drug Regulations and the cider-like beverage made from the fermented juice of pears known as perry;

“Class A spirits” means any beverage that contains more than 15 per cent alcohol by volume obtained from distillation and that is,

(a) a whisky as described in sections B.02.010 to B.0.023 of the Food and Drug Regulations,

(b) a rum as described in section B.02.030 of the Food and Drug Regulations,

(c) a gin as described in sections B.02.040 or B.0.041 of the Food and Drug Regulations,

(d) a brandy or other product described in sections B.02.050 to B.0.058 of the Food and Drug Regulations,

(e) a vodka as described in section B.02.080 of the Food and Drug Regulations,

(f) a vodka as described in clause (e) to which a flavouring has been added,

(g) a tequila as described in section B.02.090 of the Food and Drug Regulations,

(h) a mezcal as described in section B.02.091 of the Food and Drug Regulations, or

(i) a fruit spirit as described in section B.02.102 of the Food and Drug Regulations;

“Class B spirits” means any beverage that,

(a) is a liqueur or spirituous cordial as described in section B.02.070 of the Food and Drug Regulations, or

(b) contains more than 14.8 per cent alcohol by volume obtained from distillation, but is not,

(i) a Class A beverage,

(ii) a one pour cocktail, or

(iii) fortified wine;

“Class C spirits” means a beverage that,

(a) contains more than 0.5 of 1 per cent but less than or equal to 14.8 per cent alcohol by volume obtained from distillation, other than fortified wine, or

(b) is a one pour cocktail;

“draft beer” means beer for sale in a container that has a capacity of 18 litres or more;

“draft cider” means cider for sale in a container that has a capacity of 18 litres or more;

Food and Drug Regulations” means the Food and Drug Regulations made under the Food and Drugs Act (Canada);

“fortified wine” means wine to which an alcoholic distillate has been added and that contains no more than 21 per cent alcohol by volume;

“minimum retail price” includes all taxes, but does not include any container deposit;

“non-draft beer” means beer for sale in containers each of which has a capacity of less than 18 litres;

“non-draft cider” means cider for sale in containers each of which has a capacity of less than 18 litres;

“non-refillable container” means a container that the manufacturer of a product or other person who initially fills the container with the beverage does not intend to refill;

“one pour cocktail” means any beverage that,

(a) contains more than 7 per cent and no more than 15 per cent alcohol by volume obtained from distillation,

(b) has been mixed with a non-alcoholic beverage other than water during the course of manufacturing,

(c) is intended by the manufacturer to be consumed in its immediate form, and

(d) is sold in a container larger than 500 mL;

“wine cooler” means a beverage made from wine to which flavouring, colouring, sugar or other additives have been added and contains no more than 7 per cent alcohol by volume.  O. Reg. 116/10, s. 1 (1).

(2) In a year in which March 1 falls on a Saturday or Sunday, the annual adjustment date shall be the immediately following Monday.  O. Reg. 116/10, s. 1 (2).

(3) For the purpose of this Regulation, sake shall be deemed to be a wine.  O. Reg. 116/10, s. 1 (3).

Application

2. (1) Subsections 3 (2), 8 (2) and 18 (3) apply only to sales of liquor to a person,

(a) who is buying the liquor for use or consumption by the person or by someone else at the person’s expense;

(b) who is buying the liquor on behalf of or as agent for a principal for use or consumption by the principal or by someone else at the principal’s expense; or

(c) who is buying the liquor pursuant to a special occasion permit issued under the Liquor Licence Act.  O. Reg. 116/10, s. 2 (1).

(2) Subsections 3 (2), 8 (2) and 18 (3) do not apply to sales of liquor to a person for the purpose of in-store sampling in a government store.  O. Reg. 116/10, s. 2 (2).

part I
Class A and Class B Spirits

Minimum retail prices, Class A and Class B Spirits

3. (1) In exercising its power to fix the price at which Class A and Class B spirits may be sold at retail in government stores, the Board shall not set the price of any product below the minimum retail price established in accordance with this Part in respect of the class of spirits to which the product belongs and the size of the container in which it is to be sold.  O. Reg. 116/10, s. 3 (1).

(2) Except as provided in this Regulation, the operator of a government store shall not offer or sell Class A spirits or Class B spirits at retail at a price lower than the minimum retail price established in accordance with this Part for the class and size of container in which the spirits are to be sold plus the container deposit, if any.  O. Reg. 116/10, s. 3 (2); O. Reg. 481/16, s. 1.

Minimum retail price established

4. Beginning April 12, 2010, the minimum retail price for Class A spirits and Class B spirits shall be the price set out in Column 2 or 3, as the case may be, for the size of container set out in Column 1 of the Table to this section.  O. Reg. 116/10, s. 4.

Table

 

Column 1

Container size (mL)

Column 2

Class A

Column 3

Class B

40

2.10

1.15

50

2.60

1.40

60

3.15

1.70

100

3.50

2.25

120

4.20

2.70

150

5.25

3.35

180

6.30

4.05

200

7.00

4.45

250

8.45

5.30

280

9.50

5.95

300

10.15

6.40

350

11.90

7.55

360

12.25

7.80

375

12.65

7.95

400

13.50

8.50

500

15.30

10.35

600

18.40

12.45

650

19.85

13.40

660

20.45

13.85

700

21.45

14.50

720

22.05

14.85

730

22.35

15.05

750

22.80

15.35

800

24.35

16.40

1000

30.25

20.65

1050

31.80

21.70

1125

34.05

23.25

1130

34.25

23.40

1140

34.50

23.55

1200

36.35

24.80

1280

38.75

26.45

1400

42.40

28.95

1500

45.10

30.70

1750

51.80

35.75

2000

59.15

40.80

2600

76.90

53.05

3000

88.85

61.35

3790

112.15

77.35

3850

114.00

78.70

4000

118.10

81.50

4500

133.05

91.80

O. Reg. 116/10, s. 4, Table.

Annual adjustment

5. On each annual adjustment date, the Board shall, in accordance with the following formula, adjust the minimum retail price at which each container size of Class A and Class B spirits set out in the Table to section 4 can be sold:

A + (A × I)

in which,

  “A” is the minimum retail price in effect on the day before the annual adjustment date of the particular year, and

“I” is the index factor determined in accordance with Schedule 1.

O. Reg. 116/10, s. 5.

Other container sizes

6. If Class A spirits or Class B spirits are sold in a container size other than a container size shown in the Table to section 4, the minimum retail price shall be determined in accordance with the following formula:

A/B × C

in which,

  “A” is the minimum retail price in effect for the container size shown in the Table that is next smaller than the container that is not shown,

  “B” is the size of the container shown in the Table that is next smaller than the container that is not shown,

  “C” is the size of the container for which the minimum retail price is to be determined.

O. Reg. 116/10, s. 6.

Final determination of minimum retail price

7. (1) If a price determined under section 5 or 6 ends in a multiple of five cents, then that price becomes the minimum retail price on the annual adjustment date.  O. Reg. 116/10, s. 7 (1).

(2) If a price determined under section 5 or 6 does not end in a multiple of five cents, it shall be rounded up to the next multiple of five cents and the price, as rounded up, becomes the minimum retail price on the annual adjustment date.  O. Reg. 116/10, s. 7 (2).

Part II
Beer, Cider, Class c spirits and Wine coolers

Minimum retail prices, beer, etc.

8. (1) In exercising its power to fix the price at which beer, cider, Class C spirits and wine coolers may be sold at retail in government stores, the Board shall not set the price of any product below the minimum retail price established in accordance with this Part in respect of the product.  O. Reg. 116/10, s. 8 (1); O. Reg. 481/16, s. 3 (1).

(2) Except as provided in this Regulation, the operator of a government store shall not offer or sell beer, cider, Class C spirits or wine coolers at retail at a price lower than the minimum retail price established in accordance with this Part in respect of the product plus the container deposit, if any.  O. Reg. 116/10, s. 8 (2); O. Reg. 481/16, s. 3 (2).

(3) The Board shall determine the minimum retail prices applicable to non-draft beer, Class C spirits and wine cooler products in accordance with the following rules:

1. The minimum retail price for a product sold in a refillable container shall be determined by applying the applicable baseline rate then in effect to,

i. the volume of beverage involved, if the product contains less than 5.6 per cent alcohol by volume, or

ii. the absolute alcohol content of the beverage involved, if the beverage contains 5.6 per cent or more alcohol by volume.

2. The minimum retail price for a product sold in a non-refillable container shall be the sum of the amount determined under paragraph 1 plus 8.93 cents per non-refillable container, plus an amount equal to the harmonized sales tax that would be payable by a purchaser under Part IX of the Excise Tax Act (Canada) in respect of that amount, plus an amount equal to 4 per cent of 8.93 cents. O. Reg. 116/10, s. 8 (3); O. Reg. 116/10, s. 20; O. Reg. 481/16, s. 3 (3).

(3.1) Beginning March 1, 2017, the minimum retail price for non-draft cider is the same as the minimum retail price for non-draft beer. O. Reg. 481/16, s. 3 (4).

(4) The Board shall determine the minimum retail prices applicable to draft beer products in accordance with the following rules:

1. The minimum retail price for a draft beer product in a refillable container shall be determined by applying the baseline rate then in effect to the volume of product involved.

2. The minimum retail price for a product sold in a non-refillable container shall be the sum of the amount determined under paragraph 1 plus 8.93 cents per non-refillable container, plus an amount equal to the harmonized sales tax that would be payable by a purchaser under Part IX of the Excise Tax Act (Canada) in respect of that amount, plus an amount equal to 4 per cent of 8.93 cents. O. Reg. 116/10, s. 8 (4); O. Reg. 116/10, s. 20; O. Reg. 481/16, s. 3 (5-7).

(4.1) Beginning March 1, 2017, the minimum retail price for draft cider is the same as the minimum retail price for draft beer. O. Reg. 481/16, s. 3 (8).

(5) If a price determined under this section ends in a multiple of five cents, then that price is the minimum retail price.  O. Reg. 116/10, s. 8 (5).

(6) If a price determined under this section does not end in a multiple of five cents, it shall be rounded up to the next multiple of five cents and the price, as rounded up, is the minimum retail price.  O. Reg. 116/10, s. 8 (6).

Baseline rate established

9. Beginning April 12, 2010, the baseline rate for beer, Class C spirits and wine coolers shall be the rate set out in Column 2 for the alcohol content by volume set out opposite thereto in Column 1 of the Table to this section.  O. Reg. 116/10, s. 9; O. Reg. 481/16, s. 4 (1).

Table
baseline rates

Column 1

Alcohol content by volume

Column 2

Baseline Rate

Non-draft beer, less than 4.1%

$3.045 per litre

Non-draft beer, 4.1 to less than 4.9%

$3.089 per litre

Non-draft beer, 4.9 to less than 5.6%

$3.170 per litre

Non-draft beer, 5.6% or more

$58.870 per litre of absolute alcohol as defined in Division 2 of the Food and Drug Regulations

Class C spirits, less than 4.1%

$3.045 per litre

Class C spirits, 4.1 to less than 4.9%

$3.089 per litre

Class C spirits, 4.9 to less than 5.6%

$3.170 per litre

Class C spirits, 5.6% or more

$58.870 per litre of absolute alcohol as defined in Division 2 of the Food and Drug Regulations

Wine coolers, less than 4.1%

$3.045 per litre

Wine coolers, 4.1 to less than 4.9%

$3.089 per litre

Wine coolers, 4.9 to less than 5.6%

$3.170 per litre

Wine coolers, 5.6% up to and including 7%

$58.870 per litre of absolute alcohol as defined in Division 2 of the Food and Drug Regulations

Draft beer, any alcohol content

$2.456 per litre

O. Reg. 481/16, s. 4 (2).

Annual adjustment

10. (1) On each annual adjustment date, the Board shall, in accordance with the following formula, adjust the baseline rate for each of the products named in the Table to section 9 and the baseline rate as adjusted under this section becomes the baseline rate on that date:

A + (A × I)

in which,

  “A” is the baseline rate in effect on the day before the annual adjustment date of the particular year, and

“I” is the index factor determined in accordance with Schedule 1.

O. Reg. 116/10, s. 10 (1).

(2) A baseline rate determined under this section shall be rounded to the nearest one-tenth of a cent.  O. Reg. 116/10, s. 10 (2).

Applications for change in beer price

11. (1) The following rules apply with respect to applications made to the Board by a manufacturer of beer for a change in the price at which its beer is sold at government stores:

1. A manufacturer of beer may request a change in the price at which its beer is sold by submitting a price change application to the Board on any Monday no later than 4 p.m. or, if Monday is a holiday, no later than 4 p.m. on the first day after that is not a holiday.

2. On condition that the price change requested is not lower than the minimum retail price for beer in effect on the day that the price change is to take effect, the Board shall notify the applicant manufacturer and government stores that sell beer that the price change will go into effect on the second Monday following the making of the application, or, if the Monday is a holiday, on the first day after that is not a holiday.

3. Despite paragraph 2, no price increase shall go into effect in the month of December.  O. Reg. 116/10, s. 11 (1); O. Reg. 292/15, s. 1.

(2) Despite paragraph 2 of subsection (1), if the day that a price change would take effect is in the same week as the annual adjustment date in a particular year, any price change shall take effect on that annual adjustment date.  O. Reg. 116/10, s. 11 (2).

(3) Revoked:  O. Reg. 116/10, s. 20.

Changes on annual adjustment date

12. If on April 12, 2010 or on an annual adjustment date the price at which beer is sold by at government stores would be lower than the minimum retail price for beer in effect on that day, the Board shall,

(a) change the price of that beer to comply with the minimum retail price effective that day; and

(b) notify the manufacturer of the beer and government stores that sell beer that the price is to be changed on that day.  O. Reg. 116/10, s. 12; O. Reg. 292/15, s. 2.

Part III
wine, sake and fortified wine

Interpretation

13. (1) For the purposes of this Part,

“wine” means wine that is packaged in a form for retail sale.  O. Reg. 116/10, s. 13 (1).

(2) For the purposes of this Part, an operator's cost to acquire a product includes the operator's freight costs but excludes any taxes, duties or levies in respect of the product or the freight costs that the operator is required to pay.  O. Reg. 116/10, s. 13 (2).

Non-application of Part

14. This Part does not apply to wine coolers or cider.  O. Reg. 116/10, s. 14; O. Reg. 481/16, s. 6.

Minimum retail prices, wine, sake and fortified wine

15. (1) In exercising its power to fix the price at which wine, sake and fortified wine may be sold at retail in government stores, the Board shall not set the price of any product below the minimum retail price established in accordance with this Part in respect of the category to which the product belongs and the size of the container in which it is to be sold. O. Reg. 481/16, s. 7.

(2) Except as provided in this Regulation, the operator of a government store shall not offer or sell wine, sake or fortified wine at retail at a price lower than the minimum retail price established in accordance with this Part for the class and size of container in which the wine, sake or fortified wine is to be sold plus the container deposit, if any. O. Reg. 481/16, s. 7.

Minimum retail price beginning March 1, 2018

16. Beginning March 1, 2018, the minimum retail price for wine, sake and fortified wine is the price set out in Column 2, 3 or 4, as the case may be, for the size of container set out in Column 1 of the Table to this section. O. Reg. 481/16, s. 8 (2).

Table
Minimum retail price effective March 1, 2018

Column 1

Container size (mL)

Column 2

Wine and Sake: 7% or more alcohol content by volume

Column 3

Wine and Sake: less than 7% alcohol content by volume

Column 4

Fortified Wine

50

0.45

0.35

0.55

375

3.75

3.00

4.30

750

7.05

5.65

8.35

1000

9.10

7.25

10.70

1500

13.10

10.50

15.55

2000

16.90

13.55

20.15

3000

24.85

19.85

29.70

4000

32.45

25.90

38.90

6000

48.10

38.40

58.00

8000

59.65

47.60

72.00

10,000

71.85

57.35

86.95

16,000

86.70

68.00

112.65

18,000

94.60

74.05

123.75

20,000

103.10

80.50

135.45

50,000

254.20

198.40

335.10

O. Reg. 481/16, s. 8 (2).

Note: On March 1, 2019, section 16 of the Regulation is revoked and the following substituted: (See: O. Reg. 481/16, s. 8 (3))

Minimum retail price beginning March 1, 2019

16. Beginning March 1, 2019, the minimum retail price for wine, sake and fortified wine is the price set out in Column 2, 3 or 4, as the case may be, for the size of container set out in Column 1 of the Table to this section. O. Reg. 481/16, s. 8 (3).

Table
Minimum retail price effective March 1, 2019

Column 1

Container size (mL)

Column 2

Wine and Sake: 7% or more alcohol content by volume

Column 3

Wine and Sake: less than 7% alcohol content by volume

Column 4

Fortified Wine

50

0.50

0.35

0.55

375

4.10

3.05

4.65

750

7.75

5.75

9.00

1000

9.95

7.35

11.55

1500

14.35

10.65

16.80

2000

18.55

13.75

21.80

3000

27.25

20.15

32.10

4000

35.55

26.30

42.05

6000

52.75

39.05

62.75

8000

65.40

48.40

77.85

10,000

78.80

58.30

94.05

16,000

95.05

69.15

121.85

18,000

103.75

75.30

133.85

20,000

113.05

81.85

146.50

50,000

278.75

201.75

362.45

O. Reg. 481/16, s. 8 (3).

Annual adjustment beginning March 1, 2020

17. (1) On each annual adjustment date beginning March 1, 2020, the Board shall, in accordance with the following formula, adjust the minimum retail price at which each container size of wine, sake and fortified wine set out in the Table to section 16 can be sold:

A + (A × I)

in which,

  “A” is the minimum retail price in effect on the day before the annual adjustment date of the particular year, and

“I” is the index factor determined in accordance with Schedule 1.

O. Reg. 481/16, s. 9.

(2) If wine, sake or fortified wine is sold in a container size other than a container size shown in the Table to section 16, the minimum retail price shall be determined in accordance with the following formula:

A/B × C

in which,

  “A” is the minimum retail price in effect for the container size shown in the Table that is next smaller than the container that is not shown,

  “B” is the size of the container shown in the Table that is next smaller than the container that is not shown, and

  “C” is the size of the container for which the minimum retail price is to be determined.

O. Reg. 481/16, s. 9.

Part IV
Miscellaneous

New products

18. (1) Before selling liquor that is not Class A spirits, Class B spirits, Class C spirits, beer, wine cooler, wine, sake, fortified wine or cider, the Board shall set a minimum retail price for the liquor.  O. Reg. 116/10, s. 18 (1); O. Reg. 481/16, s. 10 (1).

(2) In establishing a minimum retail price under subsection (1), the Board shall have regard to the liquors to which Parts 1, 2 and 3 apply, and shall set a minimum retail price for the liquor consistent with the price then in effect for the class that the liquor most closely resembles.  O. Reg. 116/10, s. 18 (2); O. Reg. 481/16, s. 10 (2).

(3) Except as provided in this Regulation, the operator of a government store shall not offer or sell liquor for which a minimum retail price has been set under this section at retail sale at a price that is lower than that minimum retail price plus the container deposit, if any. O. Reg. 481/16, s. 10 (3).

(4) The Board shall advise the Minister in writing after setting a minimum retail price under this section.  O. Reg. 116/10, s. 18 (4); O. Reg. 481/16, s. 10 (4).

Exceptions

19. (1) Despite any provision of the Act or this Regulation, the Board may sell any liquor below the minimum retail prices required by this Regulation to any of the following:

1. Her Majesty the Queen in right of Canada, but only in respect of sales made through the Board’s private ordering department.

2. A diplomatic mission or consular post of a foreign state that is officially recognized by Canada, but only in respect of sales made through the Board’s private ordering department.

3. An international organization as defined in the Foreign Missions and International Organizations Act (Canada), but only to the extent specified in an order made under section 5 of that Act and only in respect of sales made through the Board’s private ordering department.

4. The holder of a NATO liquor permit issued by the Board, but only if the holder is purchasing in accordance with the terms of the permit.  O. Reg. 116/10, s. 19 (1).

(2) Despite any provision of the Act or this Regulation, the Board may authorize, in writing, the sale of a particular class, variety or brand of liquor, other than beer, for a price that is below the minimum retail price required by this Regulation for that class, variety or brand if the same price reduction will be made at all government stores and if, in the opinion of the Board, the sale is necessary,

(a) to clear a product that is being delisted;

(b) to clear a product that will soon become unsellable because of age or shelf life; or

(c) because it is part of a plan to permanently reduce inventory of one or more products. O. Reg. 116/10, s. 19 (2).

(3) Despite any provision of the Act or this Regulation, but subject to subsection (4), the Board may authorize, in writing, the sale of a particular class, variety or brand of liquor, other than beer, for a price that is below the minimum price required by this Regulation for that class, variety or brand at a government store specified in the authorization if, in the opinion of the Board, the sale is necessary,

(a) to clear a product that will soon become unsellable because of age or shelf life; or

(b) because it is part of a plan to permanently reduce inventory of that product in that store.  O. Reg. 116/10, s. 19 (3).

(4) A sale described in subsection (3) may not be at a price that is less than 70 per cent of the minimum retail price required by this Regulation for that class, variety or brand of liquor, and may not last for more than four weeks.  O. Reg. 116/10, s. 19 (4).

(5) Revoked:  O. Reg. 116/10, s. 20.

20. Omitted (provides for amendments to this Regulation).  O. Reg. 116/10, s. 20.

21. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 116/10, s. 21.

SChedule 1
Index Factor

1. For the purposes of this Regulation, the index factor is the greater of zero and the value calculated using the following formula, rounded to the nearest one-thousandth:

[(B/C + C/D + D/E) / 3] − 1

in which,

  “B” is the Consumer Price Index for the 12-month period ending the previous November 30,

  “C” is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “B”,

  “D” is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “C”, and

  “E” is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “D”.

2. For the purposes of this Schedule, the Consumer Price Index for a 12-month period is the result arrived at by,

(a) determining the sum of the Consumer Price Index for Ontario (All Items) as published by Statistics Canada under the authority of the Statistics Act (Canada) for each month in that period;

(b) dividing the sum obtained under clause (a) by 12; and

(c) rounding the result obtained under clause (b) to the nearest one-tenth.

O. Reg. 116/10, Sched. 1; O. Reg. 481/16, s. 11.